Flora Holdings Ltd acquired 80% of ordinary share capital of Fauna Ltd three years ago. Flora Holdings Ltd sells part of inventory to Fauna Ltd. On 31 December 2020, the year end, Fauna Ltd inventories included goods bought from Flora Holdings valued at $16 500. It is the policy of Flora Holdings Ltd to sell its goods at 50% mark up. 8. With reference to Flora Holdings Case, show how the unrealised profit in closing inventory is accounted for in consolidated financial statements? Dr Cr A. Group Profit or Loss 5 500 Group Inventories 5 500 B. Group Profit or loss 8 250 Group Inventories 8 250 C. Group Inventories 5 500 Group profit or Loss 5 500 D. Group Inventories 8 250 Group Retained 8 250 9. What will be the accounting treatment if it was Fauna Ltd having sold the goods to its parent Flora Holdings? A. Group Inventories 5 500 Profit or loss 4 400 NCI 1 100 B. Profit or loss 4 400 NCI 1 100 Group Inventories 5 500 C. Profit or loss 6 600 NCI 1 650 Group inventories 8 250 D. Group Inventories 8 250 Profit or loss 6 600 NCI 1 650